Regulating App-Based Mobility Services Roundtable

This paper details the history of Jetty, an app-based collective transport platform operating in Mexico City since August 2017. It sets out the origins of the idea, recounts the strong competitive and regulatory pushback Jetty has faced, and evaluates Jetty’s current growth and impact. In this context, the paper explores the potential contribution of new app-based mobility services in environments such as Mexico: City - where transit alternatives are ubiquitous, fares are low and unsubsidised, but service is unsafe, insecure, uncomfortable, unreliable and unaccountable. It asks to what extent a technology company can complement government regulations, by establishing and enforcing stricter service standards on private suppliers of service whilst remaining responsive and accountable to passengers.

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This paper reviews the economic case for regulating ride-hailing and dockless bikeshare. Ride-hailing has disrupted heavily regulated taxi markets and is calling much of the rationale for taxi regulation into question. It argues for light-handed regulation to enable fair, nondistorting competition across the sector. A similar approach to bikeshare is needed, though the context differs greatly. These services are creating new mobility options, while their business models are evolving rapidly. Regulators should adopt a cautious approach which minimises the risk of undermining their potential.

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This paper presents a policy framework intended to maximize the benefits of dockless bike share through outcome-oriented system planning that includes monitoring and enforcement of regulations. Operational shortfalls of dockless bike share are categorised and several policy options for each category proposed. Finally, the paper identifies lessons and best practices from the rollout of dockless bike share systems around the world.

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